UNIT-3 PLANT LOCATION AND PLANT LAYOUT

1. What is the primary consideration for choosing a plant location?

a) Market access
b) Labour availability
c) Regulatory compliance
d) Competitive environment

2. What does a fixed-position layout primarily focus on?

a) Continuous production
b) Efficient space utilization
c) Machines in linear sequences
d) Stationary product and movable equipment

3. Which criterion is NOT typically used to measure the size of a

business unit?
a) Production capacity
b) Market share
c) Innovation index
d) Profit or net income

4. What is an essential factor influencing a business's ability to

achieve economies of scale?
a) Technology advancements
b) Regulatory compliance
c) Market demand
d) Cost structure

5. Which factor determines the optimal size of a business

concerning market demand?
a) Profit margins
b) Competitive landscape
c) Customer relationships
d) Market share

6. What type of layout is common in assembly line

manufacturing?
a) Fixed-position layout
b) Process layout
c) Product layout
d) Cellular layout

7. What primarily determines the size of a business unit

concerning revenue?
a) Market share
b) Number of employees
c) Asset value
d) Production capacity

8. Which layout involves arranging machines in a linear sequence?

a) Fixed-position layout
b) Cellular layout
c) Process layout
d) Product layout
9. What is the primary goal of a product layout?
a) Minimizing material handling
b) Grouping machines by function
c) Continuous production of a single product
d) Machines move to the product

10. What layout primarily aims at efficient use of available space?

a) Cellular layout
b) Fixed-position layout
c) Process layout
d) Product layout

11. What type of layout is suitable for job shops and small-batch
production?
a) Product layout
b) Fixed-position layout
c) Cellular layout
d) Process layout

12. What primarily determines the size of a business unit

concerning its asset value?
a) Market share
b) Number of employees
c) Revenue
d) Innovation index

13. What layout is common for grouping machines into self-

contained cells for similar product families?
a) Product layout
b) Cellularlayout
c) Fixed-position layout
d) Process layout

14. What is a typical measure used to assess the size of a business

unit concerning its market capitalization?
a) Profit or net income
b) Production capacity
c) Asset value
d) Number of employees

15. How does a product layout differ from a process layout?

a) Product layout focuses on machinery; process layout
focuses on workforce
b) Product layout involves linear sequences; process
layout groups by function
c) Product layout is for large-scale production; process
layout is for small-scale
d) Product layout is fixed; process layout is adaptable
16. How does market demand influence the optimal size of a
business unit?
a) It determines the number of employees required
b) It impacts the production capacity needed
c) It influences regulatory compliance
d) It affects the market share significantly

17. Why is regulatory compliance a factor in plant location

decisions?
a) It affects market demand
b) It influences labour availability
c) It determines tax incentives
d) It impacts operating costs and legal obligations

18. In what way does a fixed-position layout differ from a cellular

layout?
a) Fixed-position layout involves continuous production;
cellular layout groups by function
b) Fixed-position layout moves machines; cellular
layout groups for similar products
c) Fixed-position layout is adaptable; cellular layout is
stationary
d) Fixed-position layout involves machinery; cellular
layout involves workforce

19. Why might a business prioritize future expansion in plant

location decisions?
a) To reduce infrastructure costs
b) To adapt to changing market demands
c) To minimize regulatory compliance
d) To increase immediate production capacity

20. What makes market access significant in plant location

decisions?
a) It reduces labour costs
b) It impacts transportation costs
c) It influences regulatory compliance
d) It determines competitive advantages

21. Why is market share an essential factor in assessing the size of a

business unit?
a) It reflects the profit margins
b) It impacts production capacity
c) It determines revenue
d) It showcases the company's portion of the market

22. What aspect primarily influences a business's decision to adopt

a process layout?
a) Customer preferences
 b) Market demand fluctuations
c) Flexibility in machinery movements
d) Fixed sequences for continuous production

23. How might market demand fluctuations impact a business's

decision on plant location?
a) It affects labour availability
b) It determines revenue
c) It influences infrastructure costs
d) It impacts production flexibility

24. Why might a business prioritize optimal space utilization in

plant layout decisions?
a) To reduce labour costs
b) To minimize material handling
c) To influence market demand
d) To impact regulatory compliance

25. In what way does a cellular layout support operational

efficiency in a manufacturing unit?
a) By ensuring a linear production sequence
b) By promoting a continuous flow of materials
c) By facilitating the movement of fixed-position
machinery
d) By creating self-contained units for specific product
families

26. How might a business leverage market demand information in

determining its optimal size?
a) By increasing the number of employees
b) By expanding production capacity
c) By focusing on innovation index
d) By reducing regulatory compliance

27. A company aims to expand its production line to accommodate

a new product range. Which type of plant layout would best suit
this expansion goal?
a) Fixed-position layout
b) Process layout
c) Product layout
d) Cellular layout

28. How could a business utilize infrastructure availability data in

making effective plant location decisions?
a) By influencing market demand
b) By reducing regulatory compliance
c) By minimizing transportation costs
d) By optimizing space utilization
29. How might a business consider future expansion plans while
selecting a suitable plant location?
a) By reducing labour costs
b) By minimizing regulatory compliance
c) By anticipating increased production needs
d) By optimizing market access
30. How might a business use market access information in making
effective plant location decisions?
a) By reducing infrastructure costs
b) By minimizing regulatory compliance
c) By optimizing transportation costs
d) By improving labour availability

SHORT ANSWERS

1. What influences operational costs in plant location

decisions?
Location proximity
2. Name one advantage of a product layout over a
process layout.
Linear workflow
3. Identify a factor impacting workforce efficiency in
a cellular layout.
Self-contained units
4. What determines the optimal size concerning
market demand?
Market demand fluctuations
5. Name one reason why a business might choose a
process layout over a product layout.
Flexibility in production sequences
6. What affects a company's compliance with
regulatory standards in plant location choices?
Legal requirements
7. Name a significant difference between a fixed-
position layout and a cellular layout.
Machinery movement
8. What impacts transportation costs in plant location
strategies?
 Proximity to transportation networks
9. What influences the decision to expand production
capacity in business size assessment?
Market demand trends
10.What influences production flexibility in various
plant layout designs?
Layout design variations

Match the following

No. Part – A Part - B
1 Market Access A Place optimization
2 Labor availability B Customer reach
3 Space utilization C Skilled workforce
4 Fixed position layout D Future demand
5 Anticipated production E Stationary product
needs
1.B 2.C 3.A 4.E 5.D

No. Part – A Part - B

6 Workforce collaboration
A Legal standards
7 Regulatory compliance B Logistic Impact
8 Transportation costs C Future growth
9 Expansion plans D Total sales
10 Revenue E Collaborative
efficiency
Unit -3 : PLANT LOCATION AND LAYOUT KEY for Match the
following Questions
6.E 7. A 8.B 9. C 10.D

True or false

1. Labour availability is a critical factor in plant location

decisions.
True / False
2. Process layout involves a linear sequence of machinery.
True / False

3. Revenue is a measure often used to determine the size of a

business unit.
True / False

4. Market demand has little impact on the optimal size of a

business unit.
 True / False

5. Product layouts are suitable for varied processing steps.

True / False

True / False

6. Cellular layouts involve continuous production sequences.

True / False

7. Process layouts are ideal for assembly line production.

True / False

8. Material handling minimization is a goal in plant layout

optimization.
True / False

9. Transportation costs aren't affected by plant location

strategies
True / False

10. Market access plays no role in plant location strategies.

True / False

Fill in the blank

1. The success of a ___________ heavily relies on its strategic

placement concerning customers and suppliers.
A. business
2. An innovative approach to reduce transportation costs
includes leveraging ___________ for streamlined logistics.
A. smart routing or logistics technology
3. ___________ considerations play a pivotal role in
4. A creative way to enhance workforce collaboration is by
establishing ___________ between workstations.
A. collaboration zones
5. The optimal size of a business unit is often contingent upon
its alignment with current and future ___________.
A. market demands
6. Integrating ___________ in plant location decisions can
significantly impact operational costs and accessibility.
A. sustainability initiatives
7. To maximize production flexibility, businesses must
creatively design ___________ that accommodate changing
 needs.
A. modular production units or adaptable workspaces
8. A key factor in successful plant location decisions is
anticipating and leveraging ___________ for market
responsiveness.
A. emerging market trends or demographic shifts
9. Business units often assess their ___________ to align
resources and strategies with industry demands.
A. competitive positioning or market share
10. Plant layouts are evolving with the integration of
___________ to improve adaptability and efficiency.
A. automation technologies or IoT devices